AI energy demand reshapes global power grids

What happened

AI data centers are driving up electricity demand faster than power networks can handle in the US, according to ING analysis. In China, AI could reach 5.3% of the country's total electricity usage by 2030. China is pursuing an "Eastern Data, Western Computing" model, placing data centers in the sparsely populated west and requiring them to run off 80% green energy.

Why it matters

Data center developers are being forced to build their own power and storage systems, which ING notes could function as "a new grid asset" supporting local energy systems. For businesses planning infrastructure investment, this signals that energy capacity and renewable sourcing are becoming critical competitive factors in data center siting.

What to watch

China's 5.3% electricity target by 2030 and the 80% green energy requirement for western data hubs represent the scale of the buildout authorities are attempting to manage.